Observers said a transaction that sees one company buy Mobilicity’s customer base of about 175,000, its cell towers and other infrastructure and another buying its radio wave spectrum could ultimately emerge.

Aziz said Mobilicity has not tabled a new request with Industry Canada for a transfer of its spectrum licenses.

Mobilicity was granted protection at the end of September after its attempt to win market share from incumbent carriers with discount offerings triggered steep losses.

Mobilicity, which operates in Toronto, Ottawa, Calgary, Edmonton and Vancouver, is pursuing a sale under court-appointed monitor Ernst & Young LLP

In an earlier affidavit Mobilicity said it has “maintained stability” and implemented cost reductions, including moving its head office out of Vaughan and into a “smaller premises” in Woodbridge, and has “terminated certain employees who’s services were no longer required.”

Mobilicity creditor Catalyst Capital Group Inc. has said it would consider supporting a merger of Mobilicity and another smaller carrier, Wind Mobile to form a fourth major competitor in Canada’s wireless market.

Wind has reportedly bid $190 million for Mobilicity, and Scotiabank analyst Jeff Fan has said in a note that Quebecor, owner of wireless operator Vidéotron, has signed a non-disclosure agreement with Mobilicity.

More on thestar.com

We value respectful and thoughtful discussion. Readers are encouraged to flag comments that fail to meet the standards outlined in our
Community Code of Conduct.
For further information, including our legal guidelines, please see our full website
Terms and Conditions.